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It's not that simple. Corporation tax is levied based on profits, and for good reason - taxing corporations based on pure income would penalize low-margin, non-
by makomk 11y ago
It's not that simple. Corporation tax is levied based on profits, and for good reason - taxing corporations based on pure income would penalize low-margin, non-vertically-integrated businesses for no good reason. But there's all kinds of tricks that multinational businesses can play with their expenses to make it seem like they haven't made a profit in the US and it's difficult to outlaw and disentangle all of them.
- hippich 11y agoNo one really responded on why corporation should be taxed on profits at all. In the end if profits are distributed, these will be taxes as ordinary or capital income anyway. And "stashing" is not a problem, if anything, "stashing" makes everybody a bit richer, since chunk of money is essentially temporarily destroyed.